Mumbai: Reliance Industries Limited (RIL), Viacom18 Media Private Limited, and The Walt Disney Company have completed the merger of Viacom18’s media and JioCinema businesses with Star India Pvt. Ltd. The merger, which has now become effective following approvals from the National Company Law Tribunal (NCLT), the Competition Commission of India (CCI), and other regulatory authorities, is set to create a new entertainment powerhouse in the country.
A Game-Changing Media Venture
With an investment of Rs 11,500 crore (approximately $1.4 billion), RIL has injected substantial capital into the joint venture (JV), which is now valued at Rs 70,352 crore (around $8.5 billion) on a post-money basis. The JV brings together some of India’s most recognized media brands, including Star India, Colors, JioCinema, Hotstar, and Viacom18. This merger also sees the consolidation of sports broadcasting rights, with an extensive portfolio covering cricket, football, and other sports.
On the ownership front, the JV is jointly controlled by RIL, Viacom18, and Disney, with the shareholding divided as follows: RIL holds 16.34%, Viacom18 also owns 16.34%, and Disney retains a 36.84% stake. The newly formed entity operates over 100 TV channels and produces over 30,000 hours of TV content annually. Additionally, JioCinema and Hotstar have a combined subscription base of over 50 million, giving the JV a dominant presence in both traditional television and digital streaming.
Leadership and Strategic Direction
The JV will be led by a dynamic leadership team, with Nita M. Ambani, the wife of RIL chairman Mukesh Ambani, taking on the role of Chairperson. Uday Shankar, a former Walt Disney executive, will serve as Vice Chairperson and offer strategic guidance. The joint venture will also have three Chief Executive Officers: Kevin Vaz will oversee entertainment platforms, Kiran Mani will manage the combined digital product, and Sanjog Gupta will head the sports content division.
The Future of Media Consumption in India
In a joint statement, Mukesh D. Ambani, Chairman & Managing Director of RIL, emphasized the transformational nature of the JV, stating, “The Indian media and entertainment industry is entering a new era. Our deep creative expertise, along with our relationship with Disney and our understanding of the Indian consumer, will provide unmatched content choices for viewers at affordable prices. We are very excited about the future of this JV.”
Robert A. Iger, CEO of The Walt Disney Company, added, “This is an exciting moment for both our companies and for India’s consumers. By joining forces with Reliance, we are not only expanding our presence in this key market but also bringing a stronger portfolio of entertainment, sports, and digital services to viewers.”
Uday Shankar, Co-Founder of Bodhi Tree Systems, echoed the sentiments, highlighting the potential to reshape the industry. “As media consumption shifts to an integrated TV-digital ecosystem, the merger of Viacom18 and Star India offers a unique opportunity to better serve diverse consumer cohorts across India. Our goal is to create India’s largest integrated media platform, delivering innovative and exciting experiences to audiences,” Shankar said.
Expansion and Global Approval
Alongside the Indian regulatory approvals, the merger has also received clearance from antitrust authorities in the European Union, China, Turkey, South Korea, and Ukraine. This global approval signifies the international confidence in the JV’s potential to disrupt the media and entertainment sectors not only in India but globally.
Beginning of New Era
In a separate transaction, RIL has also acquired Paramount Global’s entire 13.01% stake in Viacom18 for Rs 4,286 crore. This acquisition further solidifies RIL’s position as the dominant force in the JV, with Viacom18 now being 70.49% owned by RIL, 13.54% by Network18, and 15.97% by Bodhi Tree Systems.
The JV is poised to be one of the largest and most influential media companies in India, with projected combined revenues of approximately Rs 26,000 crore for the fiscal year 2024. With its unmatched media reach and a rapidly growing digital footprint, the venture is set to redefine how Indian consumers engage with entertainment, sports, and digital content.
